Moneyfront - Mutual Fund Investment is Now Easy, Profitable and Personalized

Mutual Fund is an excellent investment tool as it gives even the small or individual investors access to professionally managed portfolios of equities, bonds and other securities.  However, one has to pay a considerable amount of returns as commission to the mutual fund agent or distributor. In 2013, direct mutual fund plans were introduced by SEBI, where investors can invest directly without involving any agent or distributor. In direct plans due to the absence of commission, the expense ratio is less and returns are high. Still, many are hesitant of investing in mutual funds due to lack of know-how. Three friends Mohit Gang, Anil Bang and Puneet Mehta, who are also active investors themselves, noticed these inconveniences that the mutual fund investors face and came up with a solution. They launched Moneyfront a financial advisory platform that lets the investors invest profitably in direct plans of mutual funds and that too without any paperwork.

StartupTalky interviewed Moneyfront founders to understand the startup better

Moneyfront Highlights

Startup Name Moneyfront
Headquarter Mumbai
Founders Mohit Gang, Anil Bang & Puneet Mehta
Sector Fintech
Founded 2015
Parent Organization Moneymap Investment Advisors Private Limited

About Moneyfront
Moneyfront Founders/CEO and Team
Moneyfront History and Starting Up
Moneyfront - Business Model and Revenue Model
Moneyfront - Funding and Investors
Moneyfront - Tools Used
Moneyfront - Startup Challenges
Moneyfront - Future Plans

About Moneyfront

Headquartered in Mumbai(India), Moneyfront is a robo-advisory platform offering “direct plans” of Mutual funds. The team is proud about three principles – paperless, simplified &; automated and unbiased advisory. There is negligible awareness around Direct Plans as a concept inspite of being a client-friendly and hugely beneficial option to invest. The company is trying to promote this concept through technology and offering unbiased advice to clients who wish to invest in Mutual Funds.

Moneyfront offers financial advisory services via a comprehensive portfolio approach. Deploying a smart algorithm, it profiles the client and suggests the best Direct Plan suited to the investors’ persona.

"Our target customers are all existing investors in Mutual Funds who are currently investing through their banks or local distributors. We want to educate this base about differences between Regular Plans which they are currently getting and ‘Direct Plans’ which we offer being a registered Investment Advisor with SEBI" quotes the Moneyfront founders.

On September 2018, Niyogin Fintech, a platform that provides collateral free credit to MSMEs acquired 50% stake in Moneyfront for Rs 12 Crore.

Moneyfront Founders/CEO and Team

Three school friends, Mohit Gang, Anil Bang and Puneet Mehta founded Moneyfront in the year 2015.

Mohit Gang is presently the CEO of Moneyfront. A management degree holder  by education, Mohit is an investment expert and worked with Citibank and HSBC before starting Moneyfront.

Anil Bang is an expert in the finance domain. He started his career in ICICI bank and also worked with reputed global  financial institutes like Morgan Stanley and Marshall Wace before joining  Moneyfront. He also did extensive research on various national and global financial companies during his career.

Puneet Mehta is a talented chartered accountant. He is also a member of the 'Financial Risk Management Program' conducted by Global Association of Risk Professionals.  Puneet has vast experience of working with companies like ICICI bank, Merrill Lynch and Bank of America in various capacities over 12 years across various locations.

The founders are guided by the belief that,  ‘Happy client is the best advocate’.

At Moneyfront it is ensured that everyone in the team gets the freedom to express themselves freely. Everyone is empowered to take certain actions and they are free to contribute ideas which make the company leaner and swifter. The team extensively work on client-feedback as well. It has a full compendium of it, and keep improving its functionalities based on client feedback and suggestions.

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Moneyfront History and Starting up

All 3 Co-founders, school friends (Mohit, Anil and Puneet) were sitting and discussing their investments around end of 2015. That’s when they figured out that they were sacrificing a big slice of thier returns as commission to the distributors. Being financially aware, they wanted to avoid this situation and maximise returns. Also, they wanted to avoid the clutter of so much paper-work around. That’s when the idea of Moneyfront came up – completely paperless with automated advisory for clients.
Moneyfront's parent organization is  MoneyMAP Investment Advisors Private Limited. The name MoneyMAP  was inspired by the company's founders' name (MAP – Mohit, Anil and Puneet). However, MoneyMAP offers its services under the brand Moneyfront, as the name Moneyfront represents the company's idea to  keep client’s interest and client’s money at the forefront of everything.

logoMoneyfrony
Moneyfront Logo

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Moneyfront - Business Model and Revenue Model

As Moneyfront offer only direct plans of Mutual Funds, it doesn’t make any in-built fee or commission from fund houses. Regulations does not even allow to receive any incentive from product providers if the company registers themselves with SEBI as Investment Advisors. It can only charge a fee for the advisory. Thus Moneyfront charges a flat fee of Rs. 1200 per client per year. From time to time Moneyfront also offers free services for the initial months to the first time customers.

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Moneyfront - Funding and Investors

Initially, the company was boot-strapped by the three founders. Moneyfront raised a seed round of funding in the mid of 2017.

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Moneyfront - Tools Used

As tools are concerned, Moneyfront uses a host of it – for hiring, the Moneyfront team explores online portals. For updating and coordinating all of the marketing efforts, the team uses Google sheets. The company is also working towards moving its servers to cloud based solutions.

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Moneyfront - Startup Challenges

The most challenging part for Moneyfront has been to give simplified options to clients. Moneyfront made a first-in-industry switch module with intelligent decryption that auto-reads clients’ existing portfolios. Moneyfront customers can simply upload their existing holdings and switch to Direct plans – all paperless, in 5 clicks.

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Moneyfront - Future Plans

The founders want to see Moneyfront as a platform that has simplified client’s investment journey, given them holistic wealth solutions which are paperless, cost-effective and are most comprehensively researched. Moneyfront is planning to expand into other wealth products soon and gradually keep increasing the technological sophistication of the platform. Moneyfront wants to establish itself as a comprehensive robo-advisory platform for clients and see itself as one of the biggest player in that space in next 3 years.

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We are what we repeatedly do…. Excellence then is not an Act, but a Habit.” I am also inspired by Madhushala from Harivansh Rai Bacchan – “Raah pakad tu ek chala chal, pa jayega Madhushala” (take one path and follow it diligently, and you shall reach your destination).
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About Shubham Kumar

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